Super on paid parental leave

Superannuation on paid parental leave: Government policies

The Australian government currently provides 22 weeks of paid parental leave to eligible working parents. This is paid at the national minimum wage of $183.16 a day before tax, or $915.80 per 5 day week. It's set to gradually increase to 26 weeks by 2026.

Part of the paid leave must be taken by your partner - you cannot recieve the full allocation of paid leave yourself (unless you're a single parent).

For children born (or adopted) from 1 July 2025 this government paid leave will also include superannuation at the national super guanrantee rate of 12% p.a. This will be on top of the parental leave pay, and paid to you in one lump sum. You don't need to do anything to claim this superannuation money, it will be processed automatically for you by the ATO.

Unfortunately, for children born (or adopted) prior to this date parents do not receive superannuation on the government's parental leave payment.

Paid parental leave superannuation: Workplace policies

Depending on your workplace you could be entitled to additional paid parental leave by your employer, which you can use on top of the government's policy. Your wokrplace policy could be anywhere from 0 to 26+ paid weeks of leave.

Whether or not your workplace parental leave policy includes super is also entirely up to your employer. Some companies will offer super on their entire paid parental leave policy as a benefit to staff and some will even offer it on the unpaid portion of parental leave.

It's important to check what your employer's parental leave policy includes as early as possible, so you can plan around it.

Impact of parental leave on your super balance

Taking time out of the workforce to raise children can have a significant impact on your super balance. This is because you might not be getting paid any super during the time you're off, but you're still paying most of your super fund fees.

It's not just the money you don't get paid in your regular super payments, but it's also missing out on the compound growth you would have otherwise had from those payments.

Finder analysis found taking just 1 year of parental leave from full-time work will cost the average woman $16,800 in lost super. If the mother also chooses to work a 4-day week for the first 2 years of the child's life, that figure increases to $39,500 in lost super.

The above estimates are just for 1 child. If you have 2 or 3 children and take several years out of the workforce, you could be facing much more in lost super.

What to do to if you don't earn super on parental leave

If you're planning to take time out of the workforce to raise a child, there are a few things you can do to ensure your super balance isn't impacted too greatly.

Look for a job with a better policy (or negotiate with your employer)

Before you start trying for a family it's worth looking at your current employer's parental leave policy and how this compares to others. If your employer doesn't offer any paid parental leave, you could consider looking for a new job with a better policy. Some policies will state you need to have worked at the company for at least 12 months before being eligible for the policy, while others will have no waiting period at all.

If your workplace does offer a paid parental leave policy, check if this includes super or not. If it doesn't, this could be something you could try to negotiate with your employer (depending on the company, of course).

Consolidate your super

If you're going to go a period of time without any super contributions, you really want to make sure you've only got one fund open in your name. This is important any time, but especially while you're out of the workplace. Otherwise, you'll be paying fees on multiple super funds without contributing to any.

As you prepare for parental leave, one practical step is to consolidate your super funds. This not only simplifies your financial management but also ensures your super continues to work effectively for you during your leave.

Interestingly, many Australians find this process more straightforward than expected. Our recent Finder survey reveals how individuals across the country perceive the difficulty of finding and managing lost super, highlighting the general ease of super fund consolidation.

Finder survey: How would Australians rate the diffculty of finding lost super?

Consolidating funds so you've just got the one will help you save a lot of wasted money in fees.

Make additional super contributions

If you're in a position to do so, making additional super contributions in the lead-up to going on parental leave can help boost your balance. Making extra contributions before you go on leave is a good way make up for the lack of super contributions while you're off.

You can make up to $30,00 worth of concessional contributions per year, which are contributions that you can make from your pre-tax income or claim a tax deduction for. This limit includes the super guarantee that your employer pays you. But unless you earn over $250,000 a year, it's likely that you can contribute a fair bit more yourself before hitting this cap.

Split super payments with your partner

While you're out of the workforce on parental leave, your partner can choose to split some of their super contributions with you.

There are 2 ways your spouse can add to you super. They can make a contribution into your super fund from their post-tax income, or they can split their own pre-tax super contributions with you (this includes those that their employer pays them).

Both options allow your partner to add money into your super fund to help boost your balance while you may not be receiving super contributions yourself.

Expert insight

"Taking time out of the paid workforce to have children is undoubtedly of the biggest blows to a woman's super balance. The best strategy, while you're busy raising the next generation of taxpayers, is to get others to contribute to your super. This can be achieved either by using various government initiatives, spouse super contributions, or using a service like Grow My Money, where you earn cashback into your superannuation from your everyday spend. "

Pascale Helyar-Moray OAM

Founder of Grow My Money and author of Rich Woman, Poor Woman.

Review your fund and investment strategy

Reviewing your super fund and investment strategy is an essential step before going on parental leave. Ensure you're in a super fund that offers low fees (below 1.5% of your balance) and strong long-term performance to safeguard your balance, especially when not making regular contributions.

If you're taking an extended break from work, choosing a fund with minimal fees is crucial to prevent your balance from diminishing. For more options, you might want to compare super funds to find a suitable choice that aligns with your needs.

How to boost your super after a career break

If you've taken time out of the workforce (perhaps to raise children or care for elderly parents) it's likely that you were missig out on regular super contributions during this time.

Once you're back working, the best way to help boost your balance is to consider salary sacrificing part of your pay into your super. This means that your employer will send some of your pay into your super fund instead of your bank account before any tax is withheld on the money.

Once it's added to your super fund it'll be taxed at the lower super tax rate of just 15%, which is likely to be a lot lower than your standard income tax rate. This strategy allows you to give your super balance a boost with extra, regular contributions while also reducing your overal taxable income.

You don't need to add much either - even just salary sacrificing $20 a week into your super will make a big difference to your balance over the long term.

Frequently Asked Questions

• Is superannuation paid on parental leave?

  From 1 July 2025 parents will be paid superannuation on top of their government paid parental leave. Your employer may also pay you super on parental leave, but you'll need to check your workplace policy.

• What are the changes to paid parental leave in 2025?

  In 2025 the total amount of paid parental leave a family can from the government get will increase from 22 weeks to 24 weeks. As of 1 July 2025, parents will also get paid superannuation on the government's parental leave (for babies born prior to this, superannuation is not included on parental leave pay).

• Is annual leave accrued on parental leave?

  Annual leave is not accrued on the government's parental leave policy, however it is included in your workplace paid parental leave policy. For any unpaid parental leave, it is unlikely that you'll accrue annual leave from your employer.

• Do you get super on unpaid leave?

  Some employers choose to pay super on the unpaid portion of parental leave for their employees. This is at the discretion of the employer.

• Tips to boost super after a career break?

  The best way to boost your super after a career break is to make additional super contributions via salary sacrifice. This is something that your employer can set up and process for you from your regular salary or wages.

To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal as part of our fact-checking process.

Written by

Alison Banney

Editorial Manager, Money

Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

Alison's expertise

Alison has written 638 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living